Market information Wednesday February 24th 2016

Iran does not intend to cooperate with OPEC to freeze oil production at current levels. Saudi Arabia consequently indicated that the country does not intend to limit production. Saudi Arabia, Russia, Venezuela and Qatar agreed last week on production restrictions, provided that other oil producing countries act accordingly. Partly as a result of the statements made by Iran and Saodi Arabia, the price of Brent oil fell yesterday by more than 4% to USD 33.16.

Deutsche Börse and the London Stock Exchange (LSE) are investigating a merger of the two exchanges. This was confirmed by the London Stock Exchange yesterday. LSE would get a stake of over 45% in the new combination and Deutsche Börse would own almost 55%. LSE and Deutsche Börse think a merger will strengthen their position compared to American exchanges as American CME and ICE, two large exchanges primarily active in derivatives trading.

Figures published by the Ifo Institute show that the confidence of German entrepreneurs fell sharply in February. The overall index fell from 107.3 to 105.7. Economists had expected a decline to 106.8. The drop in confidence is partly the result of the lower growth of the Chinese economy.

The 6M Euribor remained unchanged at -0.13%. The 10Y Swap decreased 1 basispoint to 0.52%.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: update@zanders.eu.